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Reading 7: The Marketing Mix - Place (distribution channels) - Coggle…
Reading 7: The Marketing Mix - Place (distribution channels)
DISTRIBUTION CHANNELS
customers offered a range of channels to purchase an offering
channel members can offer...
physical distributionsi
information
promotion
contact
matching
negotiation
financing
risk taking
traditional distribution channels
one or more links from manufacturer to customer
length of chain can be long or short
actors in chain may vary
channel members are independent and pursue their own goals
vertical marketing system (VMS)
channel members are unified and under the leadership of one channel member
corporate VMS
contractual VMS
administered VMS
COLLABORATIVE DISTRIBUTION
unified channel systems can take place horizontally
creates mutual advantage
may be temporary to pursue a marketing opportunity
barriers to collaborating include...
entrenched culture
loss of control
sharing of sensitive data
several types of collaborative distribution
backhaul
co-loading
continuous move routing
physical internet
MULTIPLE DISTRIBUTION CHANNELS
through physical store and online
multiple routes for consumers to buy from
CHOOSING THE RIGHT DISTRIBUTION CHANNEL
type of product
convenience products - intensive distribution
speciality products - exclusive distribution
shopping products - selective distribution
perishable products - short distribution designs
competitors
size of the company
environmental factors (STEEPLE)
level of service they wish to provide
channel members need to maintain a good relationship
conflict can occur when...
expectations between channel members are breached
misunderstandings through lack of clear communication
poor performance by channel members
needs of end buyers and members of distribution network need to be assessed
policies, procedures and laws are in place
exclusive distribution, sales territories restrictions and tying agreements can all raise legal issues, restrict competition, restrain trade and create monopolies
OMNI-CHANNEL WORLD
'if your products don't appear where and when your customers want them to, you won't be closing any sales'
'channel of choice may depend on time of day, location, urgency or type of product'
'make messages to customers available on every channel'